Bunzl shares were fairly steady on Monday after the FTSE 100 distribution and services group reported a dip in profits for 2025, delivered in line with revised expectations.
Revenue edged up 0.6% to £11.85 billion, or 3.0% at constant exchange rates, with acquisitions doing the heavy lifting. Organic growth was modest at 0.4% for the full year, though it picked up to 0.9% in the second half, a sign that management actions are starting to have an impact.
The firm said it is sticking with its guidance of a more stable outlook this year.
“After a couple of bruising years for the share price, Bunzl investors were handed a steadier, if hardly sparkling, set of results in the company’s latest update,” explained Mark Crouch, market analyst for eToro.
“Revenue rose 3 per cent at constant exchange rates, largely thanks to acquisitions, while underlying growth remained subdued, though the pick-up in the second half suggests trading conditions improved as the year progressed.”
But the main concern is margins. Adjusted operating profit fell 4.3% at constant currencies to £910.3 million, with the operating margin narrowing from 8.3% to 7.7%.
However, the trajectory improved as the year went on the second-half margin decline was just 0.3 percentage points, helped by a recovery in North America, stabilisation in Continental Europe, and genuine expansion in the UK & Ireland.
North America, Bunzl’s largest market, had been the leading drag. The company responded with leadership changes, a rebalancing of decision-making between head office and local teams, cost cuts, and a push into own-brand products. Own-brand penetration rose to 30% of revenue, up from 28%, while digital orders now account for 76% of all orders.
“I am pleased with how the Group has responded to what has proven to be a challenging year for Bunzl; our people have shown great agility to be able to deliver on the revised expectations we set out in April 2025,” said Frank van Zanten, Chief Executive Officer of Bunzl.
“Our 2026 guidance for a more stable profit outlook remains unchanged and provides a foundation from which to deliver long-term profitable growth.”